Considering Stocks
Measuring the Market
Classification of Common Stock
Valuation of Common Stock
Stock Investment Strategies
100
The date on which the board of directors announces the size of the dividend, the ex-divdend date, and the payment date
What is Declaration Date
100
A measure of the performance of a group of stocks that represent the market or a sector of the market.
What is Stock Market Index
100
Common stocks issued by large, nationally known companies with sound financial histories of solid dividend and growth records.
What is Blue-chip stocks
100
A method o f stock analysis that focuses on supply and demand, using charts and computer programs to identify and project price trends for a stock or for the market as a whole.
What is Technical Analysis
100
A strategy for pu rchasing common stock in which the investor purchases a fixed dollar amount of stock at specified intervals, for example, quarterly.
What is Dollar Cost Averaging
200
The date on which the stock begins trading in the secondary market without dividend.
What is Ex-Dividend Date
200
A commonly used stock index or inĀ­ dicator of how well stocks have done. This index iscomprised of the stock pricl!s of 30 large industrial firms.
What is Dow Jones Industrial Average (DJIA) or Dow
200
Common stocks issued by companies thathaveexhibitedsales and earnings growth wellabove theirindustry averĀ­ age. Generally, these aresmaller stocks, and manytimes they are newly formed.
What is Growth Stocks
200
The price per sharedivided by the earnings per share. Also called the earnings multiple
What is Price/Earnings Ratio
200
An investment strategy that involves simply buying stockand holding it for a period of years.
What is Buy & Hold Strategy
300
A legal agreement a stockholder signs to allow someone else to vote for him or her at the corporation's annual meeting
What is Proxy
300
Another commonly used stock index or indicatorofhowwellstockshave done based on the movements of 500 stocks, primarily from the NYSE.
What is S&P500
300
Common stocks issued by mature firms that pay relatively high dividends, with little increase in earnings.
What is Income Stocks
300
Determining the value of a share of stock by focusing on such determinants as futureearnings and dividends, expected levelsofinterest rates, and the firm's risk.
What is Fundamental Analysis
300
An investment plan that allows the investorto automaticallyreinveststock dividends in the same company's stock without paying any brokerage fees.
What is Dividend Reinvestment Plan
400
Increasing the number of stock shares outstanding by replacing the existing shares of stock with a given number of shares
What is stock split
400
A stock market characterized by rising prices.
What is Bull Market
400
Common stocks that carry considerably more riskand variability than a typical stock.
What is Speculative Stocks
400
Present value of the infinite stream of future dividends
What is value of a share of common stocks
400
The measure of of how responsive astockorportfolioistochanges in the market portfolio, such as the S&P 500 Index.
What is BETA
500
A companies repurchasing or buying back of it's own common stocks
What is Stock Repurchase
500
A stock market characterized by falling prices.
What is Bear Market
500
Classifications of common stock that refer to the size of the issuing firm-more specifically, to the level of the firm's capitalization, or its market value.
What is Large Caps, Mid Caps, and Small Caps
500
dividends next year/ required rate of return-growth rate
What is the value of common stock formula
500
Risk and Return Go Hand in Hand
What is Principle 8